Rightmove upgraded at RBC, downgraded at UBS after long-term plan announcement

Investing.com -- Rightmove’s new long-term plan to boost AI investment has split analysts, with RBC Capital Markets upgrading the stock to Outperform and UBS cutting it to Neutral.

The opposing moves reflect a divide over whether the U.K. property portal’s heavy spending will cement its dominance or weigh too heavily on profits in the coming years.

RBC analysts said the market’s reaction to the plan was excessive, arguing the new phase positions Rightmove for stronger growth beyond 2028.

“Rightmove is not broken, it does not need fixing, however the investments announced today if executed well, should lead to a better bigger business in the years to come,” analysts led by Anthony Codling wrote.

RBC sees annual revenue growth of about 9% through 2028 and trimmed its price target slightly to 775 pence from 805, implying roughly 35% upside from Friday’s close.

The firm expects margins to trough at around 67% during the investment phase, with operating profit growth accelerating once new AI-driven initiatives—such as predictive models, consumer personalization, and agent tools—gain traction.

With the plan, Rightmove is “putting the money it generates to work, investing today to create higher shareholder returns tomorrow,” analysts said.

“The margin will move down during the investment phase, but there can be no gain without a bit of pain, and we cannot think of another company that would be able to say that there trough operating margin will be 67%... do let us know if you find a higher trough,” they added.

On the other hand, UBS took a more cautious stance, cutting its target price by a third to 585 pence and warning that investors may struggle to gain confidence in the new roadmap.

“The progressively ramping investment profile implies suppressed profit growth in the medium term, but the benefits are only expected to materialise from 2030,” analysts led by Jo Barnet-Lamb wrote.

UBS now forecasts 2028 revenue, underlying operating profit, and EPS 7.5%, 15.4%, and 23.1% below prior estimates, respectively.

The Swiss bank said that although the AI focus is a “proactive step to sustain growth at a higher level for longer,” Rightmove’s elevated margins leave limited flexibility to fund new spending without earnings pressure.

“We think investors will require more evidence that the plan progresses as announced, whilst the shares may face some volatility in the near-term,” the analysts said.